On Thursday, a strategist of J.P. Morgan has said that Investors can expect the best returns fro, the stocks of Asia in the first six months of the year 2019 as negative sentiment from the past year subsidies. During an interview to a national media, Asia equity strategist of J.P Morgan has said that “We’re expecting more upside in the first half. I think the best part of the returns you’ll have in Asian equities will be in the first half.” At the end of the year 2018, many of the investors were worried about many multiple factors that could pressure the stocks, that includes a potential recession in the United States, that slowing the growth in China and the tariff fight between the largest economies in the world. However, those concerns have led to a sell-off in the global markets, with stocks in the countries such as Greater China, South Korea, and Japan which are the biggest losers amongst in the Asian Continent.
Das noted that, But many of those events that investors feared could happen this year have not turned out to be as bad as expected. He said that “As we get more clarity on the trade deal of the United States and China, the growth bottoming of China is out at some time in the first six months of the year 2019, and the economy of United States averting a recession.” He added. However, all these things that are essentially are going to reinforce that risks are falling and that is the reason why all the equities are going to be going higher in the first half.
The strategist added that he prefers value stocks that those trading a price below where investors think it should be in the first half of this year, 2019. He also said that he also favors shares in Singapore, China, and the Philippines. He also said that the growth in company earnings could weaken in the second half of the year, partly due to disruptions on the trade front, which has started to hit economic activity worldwide.
With little good news to lift regional stock prices beyond the first six months of the year, the strategist added that the growth stocks firms seen to have a lot of potentials to expand would be his preferred picks. Das also said such an environment could make growth stocks the best performers throughout this year 2019.